UPL (UPL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 1% year-over-year to ₹9,067 crore, driven by a 16% increase in volumes despite a 14% price decline and 1% FX impact.

• EBITDA declined 28% year-over-year to ₹1,145 crore, with margin at 12.6% versus 17.8% last year, reflecting ongoing pricing pressures.

• Net loss for the quarter was ₹965 crore, compared to a net profit of ₹31 crore in Q1 FY24, mainly due to lower EBITDA and price pressure.

• Net debt increased to $3.3 billion as of June 2024, up $105 million year-over-year, but the sequential increase was lower than the prior year.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by the Audit Committee.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was ₹9,067 crore, up 1% year-over-year.

• Contribution margin fell to 39.5% (down 620 bps YoY), but improved 470 bps sequentially from FY24.

• EBITDA margin at 12.6% (down from 17.8% year-over-year).

• Net working capital improved by one day as of June 30, 2025, compared to a 14-day increase last year.

• Net finance cost was ₹740 crore, nearly flat year-over-year.

Outlook and guidance

• Management maintains FY25 guidance of 4%-8% revenue growth and over 50% EBITDA growth versus FY24.

• Cash flow from operations expected at $300 million-$400 million, supporting deleveraging.

• Margins are expected to normalize and improve in H2 as high-cost inventory is liquidated and pricing stabilizes.

• Rights issue of up to ₹4,200 crore approved, expected to close by end of FY25, with promoters committed to full subscription.

• India Crop Protection business expects tighter credit and inventory norms to optimize working capital, impacting sales for the next two quarters.